“VALUE is a beneficiary of emerging demand for home IOT and car connectivity through its smart-lighting customer and Aptiv,” the brokerage said in a note dated Thursday. “Both customers are domain leaders and should enjoy outsized growth in their markets, which are on the cusp of a takeoff. Relationships with these customers are also sticky, thanks to strong execution.”

The brokerage noted that IOT bulbs and in-car connectivity modules were the “lion’s share” of its 13-32 percent revenue growth estimates for 2018-20. It estimated the IOT lighting market should grow at a 21.5 percent compound annual growth rate (CAGR) over 2018-23 to US$21 billion, citing data from researcher MarketsandMarkets.

“As an early mover, we expect VALUE’s lighting customer to benefit from rapid market growth in IOT bulbs until their commoditisation. In fact, this customer recently observed accelerating smart-lighting sales, stoked by strong take-up of smart speakers,” the brokerage said.

Additionally, VALUE’s growth from Aptiv could come from wider acceptance of in-car smartphone integration by a Detroit automaker customer as well as the ramp-up of similar modules for a Nasdaq-listed non-traditional automaker in 2019, Maybank KimEng said.

“We estimate that 45 car models now carry VALUE’s connectivity modules, up from 30 in 2016,” it said.